Wondering, “How much does an excavator cost?” From small jobs to massive construction sites, excavators come in all sizes and their prices vary widely based on size, brand, and features. So, which one is right for you?
We know it’s frustrating to see a wide range of prices. Is it worth paying for a top-of-the-line machine, or can you get by with something more affordable? The right excavator can be a big investment, and understanding costs upfront is critical.
Don’t worry, this blog covers everything. We’ll explore various types of excavators, the factors that impact their cost, and ways to save money. You’ll have the knowledge to make the best decision for your project. So, let’s get started!
How Much Does an Excavator Cost?
Excavator prices vary significantly depending on size, type, brand, and features. Even if you’re planning to buy an excavator for your equipment rental business or an industrial job, understanding the price range of these machines is necessary for you to budget effectively.
Here are some top excavator brands with their average costs depending on size:
Caterpillar (CAT)
- Small Excavators: Compact models start at approximately $22,000, but newer and more advanced models range between $100,000 and $150,000, depending on features and technology.
- Medium-Sized Excavators: Typically range between $90,000 and $200,000, catering to a variety of mid-range construction needs.
- Large and Extra-Large Excavators: Prices often exceed $500,000, with some specialized models designed for heavy industrial and mining applications reaching up to $2 million.
John Deere
- Medium and Large Models: Prices generally fall between $100,000 and $300,000, providing a solid mix of cost-effectiveness, reliability, and efficiency.
- Compact Models: Pricing starts at approximately $50,000. These are reliable entry-level options.
Sany
- Price Range: Sany excavators are known for affordability, ranging from $50,000 to $250,000.
- Sany is a popular choice for cost-conscious buyers. It offers durable and high-performing models, particularly in the mid-sized category.
Kobelco
- Compact Models: Kobelco offers some of the most economical options for smaller projects starting at around $30,000.
- Larger Excavators: These models’ prices can reach up to $200,000 and are praised for their efficiency and advanced hydraulic systems.
Komatsu
- Smaller Models: Start at approximately $55,000, extending up to about $500,000 for larger machines suitable for heavy-duty construction.
- Extra-Large Excavators: Prices can reach up to $2 million for highly specialized models designed for mining and industrial-scale projects.
Volvo
- Price Range: Volvo excavators typically range from $60,000 to $300,000, depending on the size and features.
- High-End Models: Known for fuel efficiency and operator comfort, some Volvo machines exceed $500,000. This makes them a premium choice for demanding projects.
Note: The prices mentioned in this blog are based on general market research and can vary depending on factors such as brand, model, features, dealer pricing, and regional market conditions. For the most accurate and up-to-date pricing, we recommend checking with authorized dealers, rental companies, or official manufacturer websites.
Factors Influencing Excavator Costs
Several important factors influence the price of an excavator. Let’s understand those components to help you choose the right machine for your budget and project needs.
Machine Size and Operating Weight
- Larger excavators cost more because they need more materials and components to build.
- Operating weight, which measures how heavy the machine is when fully loaded, also affects cost. Industrial heavy-duty machines are more expensive than compact models for smaller jobs.
Technological Features and Advanced Capabilities
- Excavators with advanced technology like GPS tracking, automated controls, and fuel-efficient engines are usually more expensive.
- Features like remote monitoring and smart sensors increase both productivity and the price tag.
Brand Reputation and Market Positioning
- Caterpillar, Komatsu, and Volvo brands like these are known for the quality and durability that comes with a higher price.
- Lesser-known brands can offer lower prices, but you might get a lack of reliability or after-sales support from those.
Engine Power and Hydraulic System Complexity
- More powerful engines are capable of taking bigger loads, and they cost more.
- Hydraulic systems, which are essential for operating the boom, arm, and bucket, also increase the price if they are designed for high-efficiency or heavy-duty tasks.
Regulatory Compliance Requirements
- Machines that meet stricter environmental or safety regulations, like reduced emissions standards, often cost more due to advanced engineering.
- Also, compliance with local regulations can demand additional modification. As a result, costs increase.
Technological Advancements in the Industry
- As the industry evolves, new technologies like hybrid engines and improved hydraulics become available, often at a premium price.
- Technological advancements can improve efficiency and reduce operating costs over time, but they also increase the upfront investment.
Global Economic Conditions
- Prices for raw materials such as steel and oil can impact the cost of manufacturing excavators, which is then passed on to buyers.
- Changes in global trade policies and supply chain disruptions can also affect pricing.
New vs. Used Excavators: Pros and Cons
While buying an excavator, you can go for a brand-new or a used excavator. Both options have advantages and drawbacks, depending on your budget, project needs, and long-term goals. Let’s discuss in detail:
Pros and Cons of Buying a New Excavator
Pros of Buying a New Excavator
- Latest Technology and Features: New excavators have advanced technologies like GPS tracking, fuel-efficient engines, and automated controls. These features improve performance and productivity.
- Manufacturer’s Warranty: New machines often come with a warranty that covers repairs and gives you peace of mind during the initial years of ownership.
- Reliable Performance: Brand-new equipment has no wear and tear. This means fewer unexpected problems and lower maintenance needs at the start.
- Customization Options: You can choose specific features, attachments, and configurations that match your project’s needs.
Cons of Buying a New Excavator
- Higher Cost: New excavators are more expensive than used ones, which can tighten your budget, especially for smaller businesses.
- Depreciation: New equipment depreciates quickly, especially in the first few years.
Pros and Cons of Buying a Used Excavator
Pros of Buying a Used Excavator
- Lower Purchase Price: Used excavators offer a reliable machine at a much lower cost compared to new ones.
- Lower Depreciation: As the equipment has already seen severe depreciation, its resale value will remain stable.
- Immediate Availability: Usually you might find used machines for quick purchase, whereas new models can require a certain delivery time.
- Certified Pre-Owned Options: Many dealers sell certified pre-owned equipment that has been inspected and repaired. So, you’re getting a balance of cost savings and reliability.
Cons of Buying a Used Excavator
- Unknown Maintenance History: If the excavator does not have detailed records, you can face hidden issues from previous owners’ poor maintenance.
- Higher Maintenance Costs: Older equipment requires frequent repairs and replacement parts. This causes higher maintenance costs.
- Limited Warranty: Most used excavators have little to no warranty, meaning you’re responsible for all repair costs after purchase.
- Outdated Features: Used machines may lack the latest technologies, making them less efficient compared to newer models.
Want to Rent Out Excavators? Get Started for Free!
Simplify bookings, tracking, and payments with RentMy’s free trial.
- Free trial
- No credit card required
New vs. Used Excavators: Pros and Cons
Excavators are a big investment, and not everyone can afford to pay for one upfront. Luckily, there are several financial options available to make buying an excavator more affordable. Here’s a breakdown of the most common ways to finance your machine:
Equipment Loans
Equipment loans are similar to traditional bank loans but specifically designed for buying machinery. You borrow the funds to purchase the excavator and gradually pay it back with interest, with the machine serving as collateral.
Key benefits
- You own the machine once the loan is paid off.
- Fixed monthly payments help in budgeting.
Things to consider
- A good credit score may be required.
- Interest rates depend on how strong your credit profile is.
Equipment Leasing
Leasing lets you rent an excavator for a certain amount of time, with the option to buy it at the end of the lease term. You have to make regular payments to use the machine without owning it right away.
Key benefits
- Lower upfront costs compared to buying.
- Option to upgrade to newer equipment after the lease ends.
Things to consider
- You don’t own the excavator unless you choose to purchase it at the end.
- Leasing over a long period may cost more than purchasing upfront.
Dealership Financing
Many excavator shops provide financing solutions tailored to the needs of buyers. They frequently provide flexible terms and competitive interest rates. Dealerships make it easy to buy equipment by providing a one-stop solution for both purchasing and financing.
Key benefits
- Simplified process since it’s handled directly by the dealer.
- You might occasionally get special promotions or discounts.
Things to consider
- Terms and rates may vary. Always compare with other options.
Charter Capital
Charter capital is a financing solution for businesses that need funds for equipment. Due to its sophisticated financing approach, it is often used by larger companies or those with complex financial structures. Funds are granted based on the expected revenue the equipment will generate.
Key benefits
- Tailored to business needs.
- Useful for companies with strong cash flow projections.
Things to consider
- Requires detailed financial planning and approval.
Tax Advantages
Financing an excavator is more than just getting machinery; it’s a potential tax strategy. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of eligible equipment in the year of purchase.
Key benefits
- Reduces your taxable income.
- Can lower the overall cost of ownership.
Things to consider
- Consult a tax professional to understand specific benefits.
Consider Used Equipment Financing
Not every excavator has to be brand new. Used equipment financing offers a more affordable path to machinery ownership.
Key benefits
- More affordable payments for a reliable machine.
- Certified pre-owned options may include limited warranties.
Things to consider
- Interest rates might be slightly higher than for new equipment.
Tips for Choosing the Right Financing Option
- Assess your budget: Evaluate how much you can afford in monthly payments.
- Shop around: Compare interest rates and terms from banks, dealers, and financing companies.
- Understand your needs: Consider if you need full ownership or prefer the flexibility of leasing.
- Plan for the long term: Consider maintenance and operational costs, as well as finance payments.
Excavator rentals are a big investment. Manage your finances wisely with these expert-backed financial strategies.
Operating and Maintenance Costs for Excavators
Image Credit: Image by prostooleh on Freepik
Owning an excavator comes with ongoing costs that go beyond the initial purchase price. These costs keep your machine running smoothly and avoid unexpected repairs. Here’s a breakdown of the main operating and maintenance costs you should consider:
Fuel Costs
Fuel is one of the largest ongoing expenses for excavators, especially for larger models used in heavy-duty projects. The cost depends on the machine size and how frequently it’s used. Choosing a fuel-efficient model can help you reduce these costs over time. Also, make sure to consider fuel costs when planning your budget.
Maintenance and Repairs
Regular maintenance, such as oil changes and hydraulic checks, prevents costly breakdowns and extends your excavator’s lifespan. Older machines may need more repairs, so sticking to a maintenance schedule can help you control costs and reduce the risk of unexpected issues.
Insurance
You’re going to need insurance to protect your excavator from damage, theft, or accidents. The cost of insurance depends on the machine’s value, age, and usage. While it is an additional cost, having the right coverage can save you from larger financial losses if something goes wrong.
Excavators are expensive. Protect your investment by understanding the right insurance policies for your rental business.
Operator Costs
You’re going to need skilled operators for optimal excavator performance. Experienced operators ensure the machine runs efficiently, reducing wear and tear. You should include operator salaries and hiring costs in your budget as part of the overall expenses.
Storage and Transportation Costs
Excavators need proper storage when not in use, and transporting them to different job sites costs extra money. Storage fees vary depending on whether you keep the machine on-site or at a facility. In contrast, transportation costs such as fuel and truck rental can quickly add up.
Depreciation
Depreciation is the loss in the value, in this case, of an excavator over time due to wear and tear. This hidden cost reduces the resale value of the machine. Unfortunately, new excavators depreciate faster than used ones, so include it in your long-term budget.
Compliance with Regulations
Compliance with safety and environmental regulations is necessary to keep your excavator legal and operational. Regular checks and possible upgrades allow you to meet these standards. Failure to comply can lead to fines or costly modifications.
Managing excavator rentals efficiently requires the right tools. Learn how software for construction equipment rentals can simplify your operations.
8 Tips to Lower Excavator Costs
Owning and operating an excavator doesn’t have to be expensive if you follow a few smart strategies. Here are some tips to help reduce your overall costs:
Choose Fuel-Efficient or Hybrid Models
Fuel costs are an important part of operating an excavator. Choosing a fuel-efficient or hybrid model can drastically lower your fuel expenses. These models are designed to perform well while using less fuel.
Buy Used Equipment with a Solid Maintenance History
Rather than buying a brand-new excavator, you can consider purchasing used equipment in good condition. Look for machines with a low number of hours and a strong maintenance record. Certified pre-owned excavators can offer great value while saving you money on the initial purchase.
Perform Regular Maintenance
Routine maintenance, including oil changes, hydraulic checks, and part replacements, is vital to keep your excavator running efficiently. Well-maintained equipment lasts longer and requires fewer expensive repairs. Stick to a maintenance schedule to extend your machine’s lifespan and reduce downtime.
Use Auto-Shutdown Features
Many modern excavators come with auto-shutdown features. It automatically turns off the engine after a set period of inactivity. This helps conserve fuel and reduces wear on the engine, ultimately lowering operating costs.
Train Operators Well
Proper operator training maximizes efficiency and reduces wear on the machine. Skilled operators use the excavator in a way that minimizes fuel consumption, prevents unnecessary strain, and avoids costly mistakes.
Prevent Theft and Plan Storage
Theft is a common concern for excavator owners, but there are ways to prevent it. Use tracking systems and secure storage areas to protect your equipment. Furthermore, storing your excavator in a safe, dry location protects it from weather damage and increases its longevity.
Plan Efficient Transport
When moving your excavator between job sites, plan transport routes and schedule well in advance. Efficient transportation saves fuel and minimizes equipment wear. Properly storing the excavator when not in use also reduces costly repairs in the future.
Monitor and Adjust Performance with Telematics
Many modern excavators include telematics that offer real-time data about the machine’s performance. This data can help you identify fuel inefficiencies, maintenance needs, and areas for improvement. Monitoring these metrics lets you make adjustments to optimize performance and reduce costs.
Rent Smarter with RentMy
Save time, reduce costs, and run your rental business efficiently. Start for free!
- Free trial
- No credit card required
Conclusion
That’s a wrap! In this blog about “How much does an excavator cost”, we’ve covered the key factors like pricing, maintenance, and financing options. Hope this helps you make a smart, cost-effective choice.
Looking ahead, the worldwide excavator industry is expected to increase substantially. It’s expected to expand at a rate of 5.0% annually from 2024 to 2030, with a value of USD 75.85 billion in 2023. This indicates a booming demand for excavators in the coming years.
With the knowledge gained from this blog, you’re now ready to explore your excavator options. Understanding costs, maintenance, and financing will help you make a smart choice. Best of luck, and we hope your excavator investment proves worthwhile!
FAQs
What are the types of excavators?
- Mini Excavators: Small, lightweight (1-6 tons), ideal for tight spaces and small tasks.
- Standard Excavators: Versatile, used for general construction (10-45 tons).
- Large Excavators: Heavy-duty, used in mining and large construction (45+ tons).
- Long-Reach Excavators: Have extended booms for tasks like dredging or demolition.
- Crawler Excavators: Track-based for stability on rough terrain.
- Wheeled Excavators: Tire-based for speed on paved surfaces.
- Dragline Excavators: Used in mining and dredging for deep digging tasks.
